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Which of the Following Conjectures That Underlie the Keynesian Consumption

Question 16

Multiple Choice

Which of the following conjectures that underlie the Keynesian consumption function is not consistent with aggregate U.S. data?


A) The marginal propensity to consume is between 0 and 1.
B) The average propensity to consume decreases as income increases.
C) There is a high correlation between income and consumption.
D) Current income is a determinant of consumption.

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